Price Action

Dow Futures Slide Over 100 Points Despite Fed's Dovish Relent; Oil Drops On IEA Pessimism

After yesterday's torrid rally, which sent stocks higher the most in 2 months on the back of Lael Brainard surprisingly dovish comments, we have seen an unexpected profit-taking session overnight in ES, with US equity futures down 0.6%, driven largely by a renewed drop in oil prices which slid after the IEA said a surplus in global markets will last longer than initially estimated, persisting well into 2017 as reported previously.

"Did The Music Just Stop?"

Welcome to your fundamentally flawed “markets,” where the only thing that matters fundamentally – is the open spigot of liquidity.

"More To Come" - Trader Warns VIX Seasonality Suggests "It's Not Over Yet"

It was just a matter of time, noted one veteran trader, as VIX smashed higher out of its comfort zone on Friday. This is not completely unexpected as seasonally VIX has bled lower into July then risen notably into November. This year that lines up perfectly withe election uncertainty and as the trader warned, "there's more to come..."

"Friday 'Shock' Larger Than Brexit For Quants": BofA Expects $52 Billion In Near-Term Selling Pressure

"Multi-asset vol controlled portfolios that use a systematic approach similar to our models may be subject to $12bn in global equity selling pressure in the coming days ahead. Likewise, we estimate about $40bn in global equity selling pressure via CTAs in the near term. Between the two, we could see ~$52bn in near-term selling pressure, half of which may be  through US markets."

Traders Return From Vacation To Find S&P Futures Flat, Oil And Dollar Lower, Amid Flurry Of M&A

The return from summer holidays has started in much the same way as we left off August, with another subdued session that has seen European stocks little changed, Asian shares advance and S&P futures are modestly in the green amid a flurry of M&A. The US dollar weakened, with the Bloomberg Dollar Index down 0.2% for the 2nd day in a row as prospects for a U.S. interest-rate hike this month remained subdued.

August Payrolls Loom: Futures Flat, Dollar Rises, Treasuries Slip

The much anticipated payrolls day, expected to provide at least some more clarity on future Fed policy, has arrived and heading into today's report both price action and newsflow has been muted. U.S. equity index futures were fractionally higher, as European stocks rise 0.6% while Asia was flat. Gold fell as the dollar rose, while comments by Vladimir Putin which endorsed an OPEC oil production freeze while granting Iran an exemption, have pushed oil higher.

Futures Flat, Global Stocks Higher As Dollar Resumes Rise

The quiet overnight market had been focused on the upcoming comments by Stanley Fischer, who is set to give a Bloomberg TV interview at 6:30am ET, where he was expected to expand on his recent hawkish comments. Heading into Fischer's appearance, the dollar strengthened, global stocks rose, oil hovered around $47, while US index futures were largely flat and Treasuries fell.

Oil Extends Losses As 'Short-Squeeze' Ammo Is Now Exhausted

WTI Crude is now down 6% from last week's highs, back below $47 as supply concerns (Abu Dhabi production rise and ConocoPhilips' CEO comments) and OPEC freeze talks doubts have combined with the biggest collapse in speculative short positions in history (following the Saudi statement) - removing the last 'short-squeeze' leg of support from this dead-cat-bounce.

Global Stocks Slide, Futs Flat; Commodities Down On Stronger Dollar As Hike Odds Reprice Higher

The dollar index rose to a two-week high on Monday, while bond yields jumped to their highest since June and global stocks sold off after senior Federal Reserve officials indicated a U.S. interest rate increase was on the cards in the near term. The Fed effect - and the stronger dollar - reverberated through markets, pressuring stocks in Europe and emerging markets, pushing oil below $47 and the commodity complex lower.

With Janet Yellen Just Hours Away, Directionless Markets Wait For A Signal

With Yellen's much anticipated speech just hours away, the already comatose market flatlined overnight in another directionless session, with European stocks and US equity futures practically unchanged, while Asian shares to a two-week low, led by Japan, as investors showed a reluctance to take on risk before Yellen’s speech. The dollar was a tad lower, along with oil which is set for its first weekly drop in a month. 

"Things Are Worse" - Dollar Stores' Startling Admission: Half Of US Consumers Are In Dire Straits

"I know that when we look at the overall U.S. population, it seems like things are getting better. But when you start breaking it down and you look at that core consumer that we serve on the lower economic scale that's out there, things have not gotten any better for her, and arguably, they're worse because rents are accelerating, healthcare is accelerating." - Dollar General CEO, Todd Vasos